lien

Once you’ve successfully collected your final payment it’s time to give your customer an “Unconditional Waiver and Release Upon Final Payment” form (#4 release).

Never issue a #4 release form unless you have been successfully paid in full for the entire project. If you do even though you haven’t been paid and you didn’t allow for the exceptions then the courts wouldn’t side with you because unconditional is unconditional – it’s final.

If you have suppliers include the same forms from them.

This article is an overview of waiver/release forms and is not legal advice. Please contact an attorney in your state with any questions you might have.

When it’s time to submit the invoice for the final payment you may need to include a “Conditional Waiver and Release Upon Final Payment” form (#3 release).

Usually this release form does not include a “release through date” like the #1 and #2 forms do because it’s your final invoice on the project.

Once you’ve received payment and it has cleared the issuing financial institution then typically that Conditional Release becomes an Unconditional Release. That means you’ll never be able to file a lien on the project (which is okay as long as you’re paid in full).

This article is an overview of waiver/release forms and is not legal advice. Please contact an attorney in your state with any questions you might have.

You’ve successfully collected your progress payment and now it’s time to provide your customer with an “Unconditional Waiver and Release Upon Progress Payment” form (#2 release).

If you have suppliers include the same forms from them.

The #2 release is unconditional which means you’re giving up all lien rights through the “release through date”. Never issue a #2 release form unless you have been successfully paid for that time frame. If you do even though you haven’t been paid the courts may not side with you because unconditional is unconditional – it’s final.

This article is an overview of waiver/release forms and is not legal advice. Please contact an attorney in your state with any questions you might have.

I've been using and supporting QuickBooks products since the early 1990's. I've worked with thousands of contractors, assisting them with QuickBooks setup, Certified Payroll Reporting requirements, AIA Billing and Weighted-Average Overtime.

QuickBooks is a powerful product, but learning how to use it in your construction business can be difficult. I hope you find resources available here to be helpful.

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